Monetary Economics . is a decrease in the rate of inflation. (a) Disinflation (b) Deflation (c) Stagflation (d) Depression . Stagflation combines the rate of inflation with (a) Stagnation (b) employment (c) output (d) price .
The study of alternating fluctuations in business activity is referred to in Economics as (a) Boom (b) Recession (c) Recovery (d) Trade cycle . During depression the level of economic activity becomes extremely (a) high (b) bad (c) low (d) good . “Money can be anything that is generally acceptable as a means of exchange and that thesame time acts as a measure and a store of value”, This definition was given by (a) Crowther (b) A.C.Pigou (c) F.A.Walker (d) Francis Bacon . Debit card is an example of (a) currency (b) paper currency (c) plastic money (d) money . Fisher’s Quantity Theory of money is based on the essential function of money as (a) measure of value (b5) store of value (c) medium of exchange (d) standard of deferred payment . V in MV = PT equation stands for (a) Volume of trade (b) Velocity of circulation of money (c) Volume of transaction (d) Volume of bank and credit money .
When prices rise slowly, we call it (a) galloping inflation (b) mild inflation (c) hyper inflation (d) deflation . inflation is in no way dangerous to the economy. (a) walking (b) running (c) creeping (d) galloping - - Monetary Economics Answers c c a b c b a d a a a a d c a c c b b c Part – B Answer the following questions in one or two sentences. .
Define Money. . What is barter? .
What is commodity money? . What is gold standard? .
What is plastic money? Give example. . Define inflation.
. What is Stagflation? Part – C Answer the following questions in one paragraph. .
Write a note on metallic money. . What is money supply? .